Tamarisk Sawmill Co. runs rough logs through its cutting facility for the primary purpose of producing hardwood lumber. In this process, however, not all of the wood is of high enough quality to be sold as hardwood lumber. The other joint product, lower-grade lumber, has been sold as-is to other manufacturers to make wood pallets. Last year, the following quantities and sales prices were reported.

Joint process costs $461,000 (including timber logs)

Quantities produced 99,000 board feet of hardwood lumber

20,000 board feet of low-grade lumber

Sales prices at split off $8.00 per board foot for hardware lumber

$2.50 per board foot for low-grade lumber

Paul, the sawmill owner, is meeting with other top managers as they consider avenues for increased profitability. They recognize that selling the lower-grade wood to other companies has certainly helped the mill's bottom line. However, they wonder if they could further process this wood themselves and make even more of a return.

(a) Determine the gross margin levels and percentages Paul is looking at for last year's results (assume all products produced were sold). Use the sales value at split-off method to allocate joint costs. (Round proportion to 4 decimal places, e.g. 0.2516, allocated joint cost and gross margin to 0 decimal places, e.g. 5,125 and gross margin percentage to 2 decimal places, e.g. 15.25%.)

Can you please try calculating the gross margin percentage of low-grade lumber again because the answer that you wrote which is 45.25% is not correct. In other words, 45.25% as the gross margin percentage of low-grade lumber is incorrect. Can you kindly try calculating the gross margin percentage of low-grade lumber please?

Thank you.